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World\u2019s leading manufacturer of construction and mining equipment Caterpillar has said it expects a tough 2015 as a result of the modest improvement anticipated globally as well as the continued weakness in commodity prices\u2014particularly oil, copper, coal and iron ore as to which the company depends on for its sales.<\/p>\n
The company adds to undertake restructuring actions\u00a0 that will cost the company about $150 million above the restructuring it has undertaken over the past two years designed to lower our long-term cost structure.<\/p>\n
According to Caterpillar Chairman and Chief Executive Officer Doug Oberhelman the recent dramatic decline in the price of oil is the most significant reason for the year-over-year decline in our sales and revenues outlook.<\/p>\n
\u201cCurrent oil prices are a significant headwind for Energy & Transportation and negative for our construction business in the oil producing regions of the world.\u00a0 In addition, with lower prices for copper, coal and iron ore, we\u2019ve reduced our expectations for sales of mining equipment,\u201d Oberhelman said.<\/p>\n
Caterpillar expect sales and revenues in 2015 to be about $50 billion down from 55 billion last year.<\/p>\n
The company has also lowered its expectations for the construction equipment sales in China despite a growth in 2014.<\/p>\n
\u201cWhile we are, without a doubt, facing a tough year in 2015, we\u2019re driving cost management through additional restructuring actions and continued operational improvements gained from our focus on Lean Management.\u00a0 While 2015 will be difficult, the work we\u2019ve done to improve our cost structure, market position and quality will position us for better results when the world economy and the key industries we serve improve,\u201d Oberhelman added.<\/p>\n
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